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Treasury releases completed transactions report

On Wednesday, the Treasury released its most recent transactions report for the period ended September 3, 2010. The report reflects the exchange of a total of $35,280,000 of preferred stock from Carver Bancorp, Inc., United Bancorporation of Alabama, Inc., and IBW Financial Corp. from the Capital Purchase Program (CPP) into the Community Development Capital Initiative (CDCI). Treasury also invested $3,154,000 in Kilmichael Bancorp under the CDCI.

Under the CPP, Columbia Banking System, Inc. and Citizens & Northern Corporation repurchased Treasury's warrants for an aggregate of $3,701,647. Highlands Bancorp, Inc. (formerly Highlands State Bank) received an additional $2.4 million investment through the expansion of the CPP for small banks.

Treasury also exchanged its $180,634,000 of preferred stock in Pacific Capital for $195,045,000 of mandatorily convertible preferred stock, which is equivalent to the initial investment amount of $180,634,000, plus $14,411,000 of capitalized previously accrued and unpaid dividends.

There is now $162,625,000 invested in the CDCI and $55,062,369,785 (net of repayments) invested in the CPP.

On September 3, 2010, Treasury and Citibank, N.A. entered into a facility purchase agreement allowing Treasury to require Citigroup to issue an up to $8 billion, 10-year letter of credit. Treasury will increase availability under the letter of credit incrementally in proportion to the dollar value of mortgages refinanced under the FHA Short Refinance Program, from time to time during the first two and a half years. At that time, the amount of the letter of credit will be capped at the then-current level. Under the terms of the facility purchase agreement, Treasury will incur fees for the availability and usage of the letter of credit up to a maximum amount of $117 million.

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